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D-H CEO’s $1.5 Million Tops Pay List

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    Dartmouth-Hitchcock CEO James Weinstein speaks about his book "Unraveled: Prescriptions to Repair a Broken Healthcare System" during an interview at his office at Dartmouth-Hitchcock Medical Center in Lebanon, N.H., on May 18, 2016. (Valley News- Sarah Priestap) Copyright Valley News. May not be reprinted or used online without permission. Send requests to permission@vnews.com. Sarah Priestap

Valley News Staff Writer
Published: 6/18/2016 12:18:07 AM
Modified: 6/18/2016 12:27:40 AM

Lebanon — Three men on Dartmouth-Hitchcock’s payroll — Chief Executive James Weinstein, former president Thomas Colacchio and Daniel Stewart, a dermatologist in D-H’s Manchester clinic — received seven-figure compensation packages in 2014.

That’s the tale of the tape from the tax returns recently made available for public review by the Lebanon-based medical system that operates Mary Hitchcock Memorial Hospital and a network of clinics in New Hampshire and Vermont.

Weinstein, an orthopedic surgeon, sat atop the pay pyramid with a $1.5 million package that included $1.1 million in base compensation and $209,000 in retirement and other deferred pay but no bonus. 

In an interview, Anne-Lee Verville, the chairman of D-H’s board of trustees, described the chief executive’s compensation level as “not overly high or overly low.” Weinstein’s pay put him “well within the range” defined by a review of 50 large academic and research-oriented medical centers with which D-H aims to be competitive, said Verville, a former high-ranking executive at IBM.

Colacchio, who was a member of the three-headed executive team that led D-H until Weinstein became the sole CEO in 2011, had total 2014 compensation of $1.2 million including base pay of $649,000, retirement benefits of $117,000 and a $320,000 “change of control payment.” Colacchio, a surgeon, was one of 26 Geisel School of Medicine faculty included on a list of “retiring faculty, officers and staff” published in the official program distributed at Sunday’s Dartmouth College commencement exercises.

Stewart edged over the $1 million mark on the strength of his base pay of $915,000.

Twelve other individuals identified on the tax return as having medical degrees had pay packages — including salary, bonuses, and retirement benefits — above the $500,000 mark. That list was topped by David Roberts at $936,000 and Nathan Simmons at $801,000.

The over half-a-million list also included eight executives without medical degrees, including Steve LeBlanc, an executive vice president at $872,000; Chief Operating Officer Daniel Jantzen, $815,000; Chief Financial Officer Robin Kilfeather-Mackey, $735,000; Chief Innovation Officer Terrence Carroll, $695,000; Mary Oseid, vice president of ambulatory care, $614,000; Douglas Merrill, perioperative services center director, $614,000; New London Hospital Chief Executive Bruce King, $535,000 and Chief of Human Resources John Malanowski, $501,000.

D-H also made a $296,000 severance payment to former Chief Human Resources Officer Alan Weston in 2014.

In exchange for exemption from federal income taxes, nonprofits generally must make their tax returns available for public review no later than 10 months and 15 days after the end of their fiscal years. D-H releases the returns, known as Form 990s, for each of its three corporate entities: Mary Hitchcock Memorial Hospital, Dartmouth-Hitchcock Clinic, the organization that employs physicians, and Dartmouth-Hitchcock Health, a holding company.

An audited financial statement attached to the Mary Hitchcock Form 990 showed that D-H and its affiliates — including New London Hospital, Mt. Ascutney Hospital and Health Center in Windsor and Cheshire Medical Center in Keene — posted net revenue of $1.6 billion in the fiscal year that ended June 30, 2015, but lost $9.3 million from operations. That loss was more than offset by a $92.5 million gain from assets acquired when D-H consummated affiliation deals with Mt. Ascutney and Cheshire, according to the financial statement.

The tax returns sprawl out over 300 pages and are larded with informational tidbits.

They describe D-H’s “management self development plan” that was capped at 2 percent of gross pay that allowed participants to get reimbursed for professional dues, meeting and seminar expenditures and tuition as well as for up to 50 percent of the costs of a fitness and wellness program.

The returns also list the holding company’s donations to local nonprofits, including $81,000 to the Grafton County Senior Citizens Council, $65,000 to the Good Neighbor Health Clinic and $36,000 for dental services to Alice Peck Day Memorial Hospital, which is now an affiliate of D-H.

In the document, D-H describes itself as “an active participant in Vermont’s creation of a single payer health system.”

Rick Jurgens can be reached at rjurgens@vnews.com or 603-727-3229.




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